Stamps.com: Our company has continued to outperform
Stamps.com, a provider of e-commerce shipping solutions, has announced results for the quarter ended March 31, 2021.
First Quarter 2021 Highlights
- Total revenue was $189.1 million, up 25% compared to $151.3 million in the first quarter of 2020.
- GAAP net income was $34.2 million, up 108% compared to $16.5 million in the first quarter of 2020.
- GAAP net income per fully diluted share was $1.74, up 92% compared to $0.91 in the first quarter of 2020.
- Non-GAAP adjusted EBITDA was $59.5 million, up 43% compared to $41.5 million in the first quarter of 2020.
- Non-GAAP adjusted income per fully diluted share was $2.08, up 58% compared to $1.32 in the first quarter of 2020.
Ken McBride, Stamps.com’s Chairman and CEO commented: ”We continued to see strength in our financial performance in the first quarter of the year, which marked the anniversary of the COVID-19 pandemic. Our company has continued to outperform by providing best-in-class global multi-carrier e-commerce technology solutions to our customers and partners in these challenging times.
As the economy begins to show signs of broader recovery, we believe e-commerce will continue to be an integral part of both the global economy going forward and the economic recovery. We remain excited about the long-term future of our business and confident in our ability to successfully execute our global e-commerce strategy.”
First Quarter 2021 Detailed Results
First quarter 2021 total revenue was $189.1 million, up 25% compared to the first quarter of 2020. First quarter 2021 Mailing and Shipping revenue (which includes service, product and insurance revenue but excludes Customized Postage) was $189.1 million, up 28% compared to the first quarter of 2020. First quarter 2021 Customized Postage revenue was $0 million, down 100% compared to the first quarter of 2020 as the USPS terminated its customized postage program effective June 16, 2020.
First quarter 2021 GAAP income from operations was $44.3 million, GAAP net income was $34.2 million, and GAAP net income per share was $1.74 based on 19.6 million fully diluted shares outstanding. This compares to first quarter 2020 GAAP income from operations of $24.2 million, GAAP net income of $16.5 million, and GAAP net income per share of $0.91 based on 18.2 million fully diluted shares outstanding. First quarter 2021 GAAP income from operations, GAAP net income, and GAAP income per fully diluted share increased by 83%, 108%, and 92% year-over-year, respectively.
First quarter 2021 GAAP income from operations included $8.7 million of non-cash stock-based compensation expense and $5.5 million of non-cash amortization of acquired intangibles. First quarter 2021 GAAP net income included $95 thousand of non-cash amortization of debt issuance costs. First quarter 2021 GAAP income tax expense was $9.9 million and non-GAAP income tax expense was $17.5 million, resulting in a $7.6 million non-GAAP tax expense adjustment. The higher non-GAAP tax expense reflects the tax impact on the non-GAAP pre-tax income at a non-GAAP effective tax rate of 30.0% for the first quarter. See the section later in this release entitled, “About Our Business Outlook and Non-GAAP Financial Measures” for more information on how non-GAAP taxes are calculated. Excluding the non-cash stock-based compensation expense and non-cash amortization of acquired intangibles, first quarter 2021 non-GAAP income from operations was $58.6 million. Also excluding non-cash amortization of debt issuance costs and including the non-GAAP tax expense adjustment, first quarter 2021 non-GAAP adjusted income was $40.9 million or $2.08 per share based on 19.6 million fully diluted shares outstanding.
First quarter 2020 GAAP income from operations included $10.7 million of non-cash stock-based compensation expense and $5.5 million of non-cash amortization of acquired intangibles. First quarter 2020 GAAP net income included $93 thousand of non-cash amortization of debt issuance costs. First quarter 2020 GAAP income tax expense was $7.1 million and non-GAAP income tax expense was $16.0 million, resulting in an $8.9 million non-GAAP tax expense adjustment. The higher non-GAAP tax expense reflects the tax impact on the non-GAAP pre-tax income at a non-GAAP effective tax rate of 40.0% for the first quarter. Excluding the non-cash stock-based compensation expense and non-cash amortization of acquired intangibles, first quarter 2020 non-GAAP income from operations was $40.4 million. Also excluding non-cash amortization of debt issuance costs and including the non-GAAP tax expense adjustment, first quarter 2020 non-GAAP adjusted income was $24.0 million or $1.32 per share based on 18.2 million fully diluted shares outstanding.
Therefore, first quarter 2021 non-GAAP income from operations, non-GAAP adjusted income, and non-GAAP adjusted income per fully diluted share increased by 45%, 71%, and 58% year-over-year, respectively.
